There are approximately 25 million homes in the UK , and this figure currently rises by some 135,000 per annum. Current estimates suggest that around 200,000 new private sector households are forming each year (this is the demand for housing each year).
Put simply, a shortfall of circa. 65,000 private sector homes exist per annum. As each year passes, these shortfall figures are cumulative, leading to an increasing problem. There have been a number of government driven initiatives in recent years, aimed at speeding the planning system and increasing housing densities on previously developed land.
The most important planning policy guidance note for residential development is PPG3 Housing published in March 2000. The thrust of government policy is contained in the introduction, which sets out the objectives, where key paragraphs are set out below.
The Government intends that to promote more sustainable patterns of development and make better use of previously developed land, the focus for additional housing should be existing towns and cities.
Local planning authorities should:
- plan to meet the housing requirements of the whole community, including those in need of affordable and special needs housing;
- provide sufficient housing land but give priority to re-using previously-developed land within urban areas, bringing empty homes back into use and converting existing buildings, in preference to the development of greenfield sites;
- make more efficient use of land by reviewing planning policies and standards;
Economic Tests
Further, HM Treasury's recent assessment of the five economic tests conclude that ?? the incompatibility of housing structures means that the housing market is a high risk factor to the achievement of settled and sustainable convergence?. Although quite a mouthful, the summary of this statement is that the continued lack of UK housing supply in relation to UK demand, is causing macro-economic issues of stability, and also has a direct impact on other factors, such as: -
- Lower paid key workers unable to live near their work (e.g. nurses, firemen)
- People being priced out of their local area
- Lack of key skills where they are required
In a bid to determine the root causes and potential solutions, the Barker Review was commissioned by the Chancellor of the Exchequer in 2003 and was published in December 2003. Although quite a lengthy and very comprehensive document, the root cause was identified thus: ?that constraints on land supply prevent the market functioning ?normally''. This report is likely to put further pressure for improved local planning processes and access to Planning Gains for TSW licensees.
Summary
Although Planning Gains are always available in most areas throughout the UK (just look at the building going on around you!), there are Government driven initiatives to further increase the opportunities for Planning Gains. The time has always been right for Planning Gains ? but it is likely to get even better.